The Good and Bad News for UK Housing Market

House prices are now unequivocably falling. Surveys by the Chartered Surveyors also suggest falling prices in the future
US House prices are falling even more. Evidence suggests the US Housing Crash is deepening even more. House prices could fall by 5-10% next year (Bloomberg) There is concern that the UK market could mirror the US market.
Global Credit Crunch – Mortgage firms are struggling to raise finance on the global credit markets. This means the cost of mortgages is rising. e.g. the recent rate cut was rarely passed onto UK Homeowners.
Fundamental Shortage of Supply. The shortage of supply means that the housing market struggles to deal with any changes in demand. Some people predict that long term house prices will continue to rise, because the shortage of supply creates

Falling House prices are good for first time buyers. It allows earnings to catch up with house prices making them more affordable.
Falling house prices reduces inflationary pressure, making interest rate cuts more likely. This will reduce cost of mortgage interest payments.
Mortgage arrears remain low. Unemployment in the UK recently fell to an all time low. – unemployment falls
It always provides good conversation at a dinner party.
the Predictions of experts are nearly always wrong. People have been predicting house price crashes for the past 10 years.